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Council asks staff to explore water-revenue bond and interfund-loan options
Summary
Councilors asked staff to model multi-year scenarios and to explore water-revenue bonds, interfund loans and comparative debt-service impacts with a view to closing the gap between capital needs and recurring revenue.
Multiple council members urged staff to return with comparative scenarios that show how rate increases, bonding or interfund loans would affect both project delivery and customer bills. "We could at least explore that and bring the numbers back..." one council member said, urging staff to run debt-service estimates and show what a revenue bond would cost annually.
Staff agreed to work with accountants and with banks (Zions Bank was mentioned as a potential partner) to develop scenarios that quantify how much could be borrowed, what annual debt service would look like, and how those payments translate to rate impacts. The council emphasized they did not yet agree to borrow; rather they requested information so they could weigh pay-as-you-go against debt-financed approaches in future sessions.
